The boards of Steel Authority of India
and Damodar Valley Corporation are expected to formally clear by end-August
2006, a 500 MW greenfield power project to be set up in Jharkhand by a 50:50
joint venture between the two companies -- Bokaro Power Supply Co (P) Ltd.

The board of BPSCL has already
cleared the project in January 2006 and Mecon, the project consultant, has
prepared the detailed feasibility report, it is learnt. The Rs.2,200 crore
project involves setting up of two coal-based 250 MW power units at Bokaro in
Jharkhand. Land, measuring around 750 acres, has been identified.

The project would meet the energy
requirements of Bokaro Steel Plant and Durgapur Steel Plant (West Bengal) -- two
of the four integrated steel plants of SAIL -- and also of Indian Iron &
Steel Co, now a subsidiary of SAIL.

BPSCL, incorporated in 2002, currently
has a 302 MW waste-heat based power plant located in the Bokaro Steel Plant
premises.